Tech took home big wins early in the week
The first week of March on Wall Street streamlined the definition of volatility. Just off the stock market's worst week since the financial crisis, the Dow Jones Industrial Average (DJI) charged higher, marking its best day since 2009 on Monday. Vaccine updates and a rise out of tech aided the comeback, but it was short-lived as the blue-chip index dropped 786 points Tuesday evening. Coronavirus headwinds continued to cripple markets the remainder of the week, with uncertainty halting any long-term trader confidence.
On Tuesday the 10-year treasury yield dipped below 1% for the first time ever despite an emergency rate cut of 0.5% out of the Fed, while Super Tuesday results shook-up the healthcare sector on Wednesday. Major benchmarks were rounding out the week with another three-way loss, the degree of which lessened after airline stocks surged on Chief Economic Advisor Larry Kudlow's announcement that "targeted measures" may be put in place to minimize disruption to the industry. All three indexes were gripping tight to slim weekly wins Friday afternoon.
Healthcare Stocks Surge on Vaccine Updates
Drug stocks and biotechs were a popular pick on Wall Street this past week, as the race to be the first to find a vaccine for the fatal COVID-19 outbreak remained well underway. Two among the many that have announced candidates have been Novavax (NVAX), Moderna (MRNA) and penny stock Inovio Pharmaceuticals (INO). Also sending healthcare stocks buzzing was Super Tuesday results, where a lead in delegates from former Vice President Joe Biden pushed UnitedHealth (UNH) higher.
FAANG, Tech Shifts Higher
Tech stocks also saw a notable lift early during the week. Specifically, Twitter (TWTR) enjoyed a rise after reports surfaced that CEO Jack Dorsey may be replaced following a complaint from stakeholder and billionaire investor Paul Singer of Elliot Management. Meanwhile, FAANG giant Apple (AAPL) pushed higher following an upgrade out of Oppenheimer, and Western Digital (WDC) benefited from praise at Stifel.
Takeaways and Diving Into Next Week
This past week we took a look at what we can expect after the S&P 500 Index (SPX) hits correction territory, and also carved out a long-term trendline to watch on the benchmark during a choppy period. Looking ahead, the earnings calendar is starting to thin out, but next week still has a lot for investors to look forward to. There will be notable earnings from Broadcom (AVGO) and Adobe Systems (ADBE), as well as the latest inflation data to unpack.